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Directv Mirror Fee

Discussion in 'DIRECTV General Discussion' started by JAMHRR, Aug 6, 2003.

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  1. Aug 6, 2003 #1 of 24
    JAMHRR

    JAMHRR Legend

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    Does anyone know if DTV will drop their $4.99 per month per receiver mirroring fee?

    My multi-satellite dish is picking up the signal where it can be distributed to 4 receivers. It isn't like I have 4 different multi-satellite dishes with different account numbers that have to be billed.

    :rolleyes:
     
  2. Aug 6, 2003 #2 of 24
    RichW

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    The "mirroring fee" generates millions of dollars each month for both DBS providers. It is hiighly unlikely that this fee will disappear, since millions of households are willing to pay it.
     
  3. Aug 6, 2003 #3 of 24
    Greg Bimson

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    DirecTV's subscriber acquisition costs (SAC) for the second quarter of 2003 rose $50 per subscriber, I believe from $545 to $595. On the conference call, the rise in SAC was attributed to the many new customers that were buying multiple STBs.

    This fee is not going to go away.

    Previously, DirecTV has stated that 40 percent of their customer base has more than one STB. Using that figure on the current subcriber base, as the base minimum (since DirecTV mentioned higher SAC), that would mean:

    There are 4.6 million subscribers with at least a second receiver.
    That generates about $23 million per month.
    That means the fees generate $276 million per year.

    Of course, that does not include:

    Subscribers with three or more receivers
    An increase in the percentage of subscribers with more than one STB.

    DirecTV practially subsidizes every new receiver, and they probably will still have to pay fees for the access card technology for each receiver.

    Therefore, DirecTV will not reduce the STB fees.
     
  4. Aug 6, 2003 #4 of 24
    JAMHRR

    JAMHRR Legend

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    Thank you for your responses. I can live with $4.99 a month mirroring fee because Adelphia cable in the Buffalo area charges $11.00 a month for each digital cable box after the 1st one.
     
  5. Aug 6, 2003 #5 of 24
    bills976

    bills976 Godfather/Supporter

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    This of course doesn't apply to poor Pegasus subscribers, who receive nada in terms of promotions when signing up. Plus they get to enjoy the royalty fee as well as the built-in markup on all packages. On top of that, they also pay the extra receiver fee. One can only hope D* will buy these creeps out.
     
  6. Aug 6, 2003 #6 of 24
    pez2002

    pez2002 Hall Of Fame

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    $11 a month for each box Damm I think comcast does something Like that in philly but for the anolog boxes its free for each tv

    Why are digital cable boxes so Expensive And big ????
     
  7. Aug 6, 2003 #7 of 24
    Homer

    Homer Guest

    In Pittsburgh where I live, it's 4.99/month on Comcast. They also charge 299 for a Non-returned digital converter that probably costs them very little. Approximately $100 from what I have been able to uncover.
     
  8. Aug 6, 2003 #8 of 24
    sampatterson

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    I believe that in the past that both Directv and Dish also have to pay a royalty or per receiver/smartcard fee to the companies that provide the encryption/conditional access technology, thus part of the extra fee (but probably not $4.99...)
     
  9. Aug 6, 2003 #9 of 24
    Mike Richardson

    Mike Richardson Banned User

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    Cable is still yelling loud and clear that you can hook up "analog TVs for free to regular cable". Of course, this is sparkly, crappy, 50-channel, no EPG cable. For $5 a month at Direct/DISH your extra TV gets ALL your channels, EPG, etc. For $5 - $15 at cable company you get more (and decent looking) channels and EPG, the analog channels are still crappy. So the value of the $5 fee at DBS companies is more than the $5 - $15 at cable.

    I would like to see that fee at $4 for non-leased receivers customers though, on DBS. Try to stay a little competitive. I know someone that has, like, 6 TVs, all cabled up. It would cost them $30 a month to get boxes for all those TVs at a DBS company.
     
  10. Chris Freeland

    Chris Freeland Hall Of Fame

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    But just because someone has 6 tv's does not mean they necessarily need a STB for each and every tv. How many of these tv's are being watched at the same time and on different channels. Sometimes a family may have more tv's then family members and some times 2 or more family members will watch the same show on the same channel. Many times 2 or 3 STB's being shared by these 6 tv's is sufficient and having a STB for every tv is a wast of money. Take my house for example, we currently have 3 working tv's with 3 in are family, these 3 tv's are connected to 2 E* STB's plus an outside antenna. Plus we have 2 DVD players, a vcr and an old Natindo 64 game machine, between all of these devices plus the option of watching locals ota, we would be foolish to have more then 2 STB's and do not imagine we are too different then many family's in this regard. This is why if I upgrade to a DVR522 in the near future, it will replace my 2 current STB's rather then supplement them.
     
  11. Mike Richardson

    Mike Richardson Banned User

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    Yeah but the thing is, they don't want to have to do a bunch of wiring crap with boxes. I know they could get away with 3 boxes but the only economical way to wire them all up would be with coax. Obviously you want S-Video AT LEAST on your good TV (family room/theatre room/whatever). And all those boxes have to have UHF things too.
     
  12. Mike123abc

    Mike123abc Hall Of Fame/Supporter DBSTalk Gold Club

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    It will be interesting to see what cable charges when the new digital cable ready TVs come out.... If they allow you to have multiple sets without any mirroring fees, they will really start to put the hurt on DBS.
     
  13. Karl Foster

    Karl Foster Hall Of Fame

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    We have four STB's, and only three people in the house. I kept the old RCA DRD 420 that I got with my original setup and put it in the kitchen. I didn't have a way to run wire from the Family Room to the kitchen without making a huge mess, so I don't mind too much paying the $4.99 each month for it. We have three PVR's, and pay $4.99 each for them, as well as $9.95 for the UTV service on the account. We have three PVR's, one in our Family Room, one in the Master Bedroom, and we got one for our daughter for her birthday last Spring. She begged for one, so I, being a softie, bought one for her, and she would rather watch tv in the Family Room on the 32" Toshiba flat-screen, rather than her 13" tv - go figure. It may seem like a lot, but not all of our interests are the same and it works for us (read nobody complains). The extra receivers and the UTV fee nearly double my bill each month. It breaks down like this:

    $39.99 - Total Choice Plus w/locals
    $2.00 - Fox East/West
    $9.95 - UTV monthly fee - worth it, but I still don't like paying it
    $4.99 - second receiver - bedroom UTV
    $4.99 - third receiver - daughter's UTV
    $4.99 - fourth receiver - kitchen rcvr
    $4.41 - sales tax - new this month :(
    $71.33 - total

    If you throw in a couple of PPV's each month, it really starts to add it. I have a hard drive almost full of PPV's we have bought over the past year.

    I do find, though, that I get quite a bang for the buck with my setup. We rarely rent DVD's any more - I'd rather wait a couple of weeks and record it off PPV - no late fees (I'm horrible at returning them on time), and I can record and keep as long as I like. My interests are pretty varied, so I record a lot of shows that seem of interest on my subscribed stations - many get erased before I watch them, but at least I have the opportunity not to miss anything that looks of interest to me in the guide. The UTV also picks up stuff I never would have thought to record. I'm really not a tv junkie, and I find that I listen to as much music as I watch tv. I am an analog cable convert of over three years now, and still marvel at how much quality programming is out there, and how good the service, equipment, and overall experience is. I also marvel at the technology. I don't understand it as well as I should, but I sure like the end result. There's my ramblings for the day. Take them for what they are worth. :)
     
  14. Mike D-CO5

    Mike D-CO5 Hall Of Fame

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    I suggested to Dish that they eliminate all receiver fees and Dvr fees if you subed to AEP so they would have an advantage over cable and Directv and I have heard nothing back at all.

    When the tvs all go to digital and they use the plug and play standard I wonder what will happen. This could have been a big plus for Dish to advertise this as and advantage over Both Cable and Directv. Think of all the market share and converts they would have coming to them . Yes they would loose a lot of money that they normally get through additional receiver fees but they would make it up in volume of new customers and they would increase in market share over all competition.

    When this plug n play becomes standard I wonder how these Sat companies and Cable companies are going to make up on these fees without going up on all regular packages?
     
  15. Mike Richardson

    Mike Richardson Banned User

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    I think there was another topic on this. Basically, they are not going to be able to easily do digital cable ready TVs for a few reasons:

    1. All cable companies must agree on a standard for digital cable. I believe most, if not all digital cable, in the US, is using the TV Guide (formerly Prevue) interface and compatible receiver. But they all use different encryption keys, and other things like that.

    2. What if one cable company decides to switch to MPEG-4 or something to fit in more channels and they have to swap a bunch of receivers? If the receiver is in the TV it will be left out, making the built in receiver useless. The advantage of having all equipment being rented, is lost.

    3. Some other reasons I forgot.

    4. Couldn't DISH or DirecTV invent a receiver which makes the satellite feed "look like" digital cable and then wire that to all the TVs? You could pay a $10 a month fee on that one receiver (maybe have a rental option) which could feed a lot of TVs.
     
  16. Chris Freeland

    Chris Freeland Hall Of Fame

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    E* has some receivers in the works that kind of do what you are talking about.
    322 coming this fall with 2 tuners with separate outputs and one card and no 2nd receiver charge on that 2nd tuner.
    DVR522 coming this fall, same as 322, but with 120G hardrive and DVR capabilities added on.
    DVR544, coming ? Same as 522 except with 4 tuners and no extra receiver fees on extra tuners.
     
  17. Mike123abc

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    They agreed to a standard with cablelabs last year and that is why this year they are going to be able to put out digital cable ready TVs with smart cards.
     
  18. Mike Richardson

    Mike Richardson Banned User

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    And 5 years later when they add a bunch of HD channels and runs out of space on the system and want to change to MPEG-4 or whatever then they'll be screwed.
     
  19. timf

    timf Legend/Supporter DBSTalk Gold Club

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    I think DIRECTV should revise multiple receiver fees as follows. It would still generate revenue, but save those of us who have lots of receivers (me) money.

    1-2 receivers: Included
    3-4 receivers: $9.95/mo
    5-8 receivers: $19.95/mo

    The way I see it, people with 5 or more receivers are likely to subscribe to a higher programming package anyway, so giving people the 6th-8th receiver free wouldn't cost them too much money. Perhaps they should enforce the telephone line rule more strictly to avoid people subscribing 8 receivers just to give them to friends.
     
  20. Chris Freeland

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    I have had E* since 96 and at that time I sold E*, D*, P* and C-band for a local satellite dealer. In 96, both D* and E* charged only a $1.99 2nd receiver fee, however the hardware was $700-800 and a 2nd receiver was only about $50 less or $650-750. Latter by the end of 96 or early 97 the price of the hardware dropped to about $300 with standalone receivers going for about $250 and they have continued to drop ever since, the 2nd receiver fee went up to the current $4.99 fee when the price of hardware dropped. It was explained to me that the higher 2nd receiver fee was to offset the lower cost of hardware because E* and D* were losing money on hardware, with the first receiver D* and E* get their hardware losses back through the programing subscriptions which they do not get with a 2nd receiver, the $4.99 mirror fee helps make up that loss on the hardware, because of this I doubt that D* or E* will ever discontinue this fee.
     
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